Deduction of TDS at the time payment of quarterly interest from SCSS accounts, withdrawal from NSS-87 accounts, Payment of Commission to Agents and issue of TDS Certificate in Form I6A

SB ORDER NO. 10/2013

F. No.107-02/2007-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001

Date : 09.07.2013

Subject- Deduction of TDS at the time payment of quarterly interest from SCSS accounts, withdrawal from NSS-87 accounts, Payment of Commission to Agents and issue of TDS Certificate in Form I6A.

The undersigned is directed to refer to this office letter of even number dated 21.9.2010 (SB Order No.20/2010) vide which a detailed procedure on provisions of deduction of TDS under different scctions of IT Act pertaining to Small Savings Schemes and issue of TDS Certificate in Form 16A was circulated.

2.This office is receiving number of complaints from many depositors and agents regarding mismatch of details of TDS shown in TDS Certificates issued by Post Offices and amount of TDS shown in the Income Tax Web Site in 26AS against their PAN resulting in non refund of TDS where due.

3. It is obligatory under the law for the Post Offices to follow latest amendments and notifications issued by Central Board of Direct Taxes (CBDT) which are uploaded on the Income Tax Department web site www.incometaxindia.gov.in . As per Income Tax Act and Rules, TDS certificate for other than salary is to be issued to depositors/agents in Form 16A on quarterly basis within 15 days of filing TDS return by DDSs in Post Offices, failing which a penalty of Rs.100/- per day can be imposed on the DDO. Procedure for filing eTDS return and generation of Form l6A from TDS Reconciliation Analysis and Correction Enabling System” or https://www.tdscpc.gov.in (which is called TRACES Portal) previously called TIN website, is enclosed for ready reference.

4. All Circles/ Regions should nominate one nodal officer not below the rank of AD to go through this website regularly and update the Divisions and other independent units about any change in the Income Tax provisions, who in turn, should update the Post Offices under their jurisdiction and ensure that Form 16A is generated by IIPOs within the prescribed period i.e within 15 days of filing of eTDS quarterly return (circulated vide SB Order No.20/2010) and also monitor/ensure the quarterly return is tiled after close of each quarter 30th June/30th September 3lst December/31st March. Form 16A, relating to transactions of SOs should be sent to respective SOs for delivery to the depositors/agents. A notice in this regard may be displacd in the Post Offices for information of depositors/agents. If any depositor/agent fails to collect Form I6A within 15 days of generation of Form l6A or placing notice on the notice board, it may he sent to his/her latest address by ordinary post All other provisions regarding rates of TDS applicable under different sections of IT Act circulated vide SB Order No.20/2010 stands unchanged.

5. This issues with the approval of Member (Tech.)

Yours faithfully,

sd/-

(V.K.Mohan)

ADG (FS-II)

1. As per Circular No. 01/2012 dated 9.4.2012 issued by CBDT, Section 203 of the Income-tax Act 1961 (“the Act”) read with the Rule 31 of the Income-tax Rules 1962 (“the Rules”) stipulates furnishing of certificate of tax deduction at source (TDS) by the deductor to the deductee specifying therein the prescribed particulars such as amount of TDS, valid permanent account number (PAN) of the deductee, tax deduction and collection account number (TAN) of the deductor, etc. The relevant form for suchTDS certificate is Form No.16 for Salary and 16A for non-salary deductions. TDS certificate in Form No.16 is to be issued annually whereas TDS certificate in Form No.16A is to he issued quarterly.

2 In case of TDS collected from SCSS/NSS-87 depositors and SAS/MPKBY/PPF/Agents, ‘TDS Certificate is required to be issued in Form No16A on quarterly basis. From 1.4.2012, it is mandatory for all deductors who have been issued TAN number to issue TDS certificate in form No.16A after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or (https://www.tdscpc.gov.in) (which is called TRACES Portal) previously called / TIN website. This is possible only if full detail of TDS collection made at IIO (including SOs in jurisdiction) is entered in eTDS monthly return in Form 24G as well as TDS quarterly return in Form 26Q is filed by DDo i.e. Postmaster of HPO. Detailed guidelines on filing of eTDS return may be seen from CBDT Circular No 08/2012 dated 5.10.2012 available on its website.

3 From the period 1.4.2012 onwards, all DDOs having allotted TIN number should file eTDS returns on monthly as well as quarterly basis in prescribed formats i.e 24G and 26Q and generate TDS certificates in Form 16A from “TDS Reconciliation Analysis and Correction Enabling System” (called TRACES Portal) or (https://www.tdscpc.gov.in) which was previously called TIN website.